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Arms Race mode is based on the original Gun Game mod. The entire game consists of one round with continuous respawns. The winning conditions are the same for both teams. One player from either team must score a kill with the Gold Knife.

The ultimate goal in Arms Race is to score a kill with the Gold Knife. There is no time limit, buy menus are unavailable, money will not be rewarded for any reason, and weapons cannot be thrown away but will disappear as soon as the player dies. Instead, players spawn with the weapon on his or her current level as well as the knife. For every two kills on a particular level, the player will receive a new weapon by leveling up to the next level. The gold knife is the final weapon a player receives, and the first player to score a kill with the gold knife wins the game along with his or her team.

After a death, the player will immediately respawn a short spawn protection time to prevent spawn camping. Much like deathmatch, once the player moves the spawn protection is quickly removed. Respawning will leave the player with the same weapon being used prior to death, unless the player was killed with a knife or by committing suicide. Doing so, will cause the player to revert to the previous weapon tier.

It is possible to dominate enemies in this game mode and earn a "killing spree" when a player successfully eliminates 4 or more enemies. The message "[player name] is on a killing spree!!!!!!" is seen to all players when the player earns a killing spree.

As of November 11, 2014, a major overhaul to the Arms Race scenario was made. The weapon assortment is now randomized, although the Gold Knife retains its place as the last kill to win. However, the category of weapons in order are kept constant which is:

3 SMGs

4 Rifles

2 Shotguns

2 Sniper Rifles

1 Machine Gun

4 Pistols

Furthermore, akin to some gun game mods, it is required to earn 2 kills per weapon (excluding the Gold Knife) to level up.

The team leaders with red and blue silhouettes around their respective models

A new mechanic in the Arms Race mode is the "Team leader". A team leader is a player who has progressed the most in Arms Race for his team. When firing, a red (for Ts) or a blue (for CTs) silhouette is drawn around the team leader's models as well as glowing screen edges in first person. The glow reveals the team leader's location to all players capable of seeing the enemy. Prior to the February 17, 2016 patch (Operation Wildfire), the glow was visible from behind any surface.

If a player kills an enemy team leader, the player will instantly level up unless the killer is a leader as well.

If a team leader has progressed further than the opposing leader of the enemy team, the team leader will be named the match leader.

Every player started with a submachine gun, specifically the MP9, and would receive a new and different weapon for each kill. The assortment of weapons was fixed. If a player manages to score 2 kills with the same weapon, the player will advance two "levels." This can be done with shotguns and the AWP.